Does TUPE apply in circumstances where a company goes into voluntary liquidation and its business is closed with all employees being made redundant and then a buyer is subsequently found for the business, for example, a month or two later? Do the employees automatically transfer to the new owner?Posted in : First Tuesday Q&A NI on 1 February 2011
Where a company is the subject of “bankruptcy or analogous insolvency proceedings” instituted with a view to liquidating its assets under the supervision of an insolvency practitioner, the employees will not be accorded the normal protections under TUPE in respect of the automatic transfer of their employment and associated rights, duties, powers and liabilities on a relevant transfer, nor the protections against detrimental changes to their contracts or unfair dismissal by reason of the transfer.
Therefore, the dismissed employees will not automatically transfer to the buyer when the business is subsequently purchased and do not have special protection against dismissal. In this case, the
Already a subscriber?
Click here to login and access the full article.Log in now to read the full article
Don't miss out, start your free trial today!
Are you fully aware of the benefits of Legal-Island's Employment Law Update Service? We help hundreds of people like you understand how the latest changes in employment law impact on your business.
Help understand the ramifications of each important case from NI, GB and Europe
24/7 access to all the content in the Legal Island Vault for research case law and HR issues
Ensure your organisation’s policies and procedures are fully compliant with NI law
Receive free preliminary advice on workplace issues from the employment team at Worthingtons Solicitors
Back to Q&A's This article is correct at 02/09/2015
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.